VAT Rates

The VAT rates and thresholds are as follows:

Registration threshold

If taxable turnover for VAT purposes in the previous 12 months exceeds the threshold.


VAT registration is compulsory if either of the following applies:

  • VAT taxable turnover may go over the threshold in the next 30 days alone.
  • When a VAT-registered business is taken over as a going concern.

Deregistration threshold

If VAT taxable turnover for the year is less than or equal to the deregistration theshold or it is expected to fall below it in the next 12 months, a business has the option of deregistering – if it wants to.

VAT scheme thresholds

Changes from 2014

  • VAT treatment of prompt payment discounts given by suppliers

Changes from 2015

The Government will consult on changes to the VAT rules in the following areas:

  • Zero-rating of work to adapt cars for use by disabled persons
  • VAT avoidance scheme disclosures
  • Reverse charge for buyers of gas and electricity – not domestic customers